Budget passes: Next step, vetoes
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BY NANCY HICKS / Lincoln Journal Star
The state's $6.1 billion two-year budget sailed past final reading Wednesday and on to Gov. Dave Heineman's desk where he will have a chance to use his red pen, vetoing spending he believes is over-the-top.
But the vote showed a division within the Appropriations Committee, with some members still angry over a secretive but successful last-minute maneuver to add $15 million for job training programs.
"I am angry and disappointed," said Lincoln Sen. Marian Price about the $15 million proposal that skirted the Appropriations Committee process and was added late last week during second-round votes on the bill.
They "thumbed their nose at the appropriation process," and "the money is going into a big, deep hole," Price said.
Appropriations Committee Chairman Don Pederson, with the support of Heineman, offered the job-training proposal.
"I stand squeaky clean," Price said. "I played no part of that Santa Claus."
The Appropriations Committee usually stands in unison on budget issues during the discussion by the full Legislature. But two committee members — Price and Lincoln Sen. Chris Beutler — broke ranks, voting against several of the budget-related bills. And while also upset about the $15 million bypass, others voted "yes" on the final passage of the bills.
"I thought we really worked hard to reach consensus (on the committee), then to have this backdoor effort, hurt that process," said Sen. Nancy Thompson of LaVista.
"The governor chose to be sneaky, and he got caught, and he hurt the process," she said.
The budget, laid out in eight budget bills, is now in the governor's hands.
"The governor will take the full five days to carefully look at the entire budget package," said Aaron Sanderford, spokesman for Heineiman. "He wants to take a closer look, line by line," Sanderford said.
That five-day deadline ends Tuesday at midnight.
The governor is waiting for the tax incentive package to reach his desk so he knows the entire landscape before making final veto decisions, according to Pederson. Most of the tax incentive package is now at the third and final stage of debate.
The constitution allows the governor to reduce any specific appropriation in the state budget bills, but not to increase any spending. The 49-member Legislature needs 30 votes to override a veto.
With the recent recession just a memory and because revenues are rising faster than expected, senators were able to increase spending an average of 7.2 percent each year without raising any tax rates.
The two-year budget is "both socially responsible and fiscally conservative," said Chairman Pederson.
Senators also dipped into the state's growing cash reserve fund for some big-ticket items. The state will pay a $145.8 million settlement on a lawsuit over building a low-level radioactive waste disposal site in Nebraska from the cash fund. The state lost that suit in federal court.
The state also will use the cash fund for the $15 million in job training funds and $38.6 million for the public schools retirement plan that needs additional support because of several years of low earnings.
There are a few new or expanded programs. Senators set aside $500,000 to give communities matching grants to promote tourism. The budget also includes money for five more state troopers, $1.25 million for substance abuse treatment programs as part of the new community corrections program and $6 million for water-related issues. Day care programs that participate in the state's day care subsidy program will get an 11 percent increase after no increases since 2001.
Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.
How they voted
Nebraska lawmakers voted 34-10 Wednesday to pass the main budget bill. The measure needed 33 votes to pass and take effect immediately. A "yes" vote was to pass the measure. A "no" vote was against passing the measure.
Voting "yes": (34) Aguilar, Baker, Brashear, Brown, Burling, Byars, Combs, Cornett, Cudaback, Cunningham, Engel, Fischer, Flood, Heidemann, Howard, Hudkins, Janssen, Jensen, Johnson, Kopplin, Kremer, Kruse, Landis, Louden, McDonald, Mines, Pederson, D., Preister, Raikes, Schrock, Stuhr, Stuthman, Synowiecki, Thompson.
Voting "no": (10) Beutler, Bourne, Chambers, Connealy, Erdman, Friend, Price, Redfield, Schimek, Smith.
Not voting: (1) Foley.
Excused: (4) Langemeier, Pahls, Pedersen, Dw., Wehrbein.
No tax increases, no major cuts
Highlights of the two-year state budget passed by the Legislature Wednesday:
* No tax increases
* No major cuts in state programs or operations
* 7.2 percent increase in average spending each year
* 6.7 percent increase for the University of Nebraska in average spending each year
* $2.97 billion spending the first year, $3.16 billion the second
* Medicaid spending increases 8.1 percent
* Aid to K-12 education increases 8.9 percent
* Special-education funding for K-12 schools increases 5 percent the first year, 3 percent the second
* $15 million added for job training programs
* Nebraska Women's Commission revived with $200,000 in funding a year
* Water management program gets $6 million
* Substance abuse treatment for convicted criminals and community corrections programs receives $2.5 million
* Scholarships for needy college students increased $2.4 million
* Five State Patrol troopers added
* New program to help pregnant women find alternatives to abortion funded with $500,000
* Low-level nuclear waste lawsuit settlement of $145.8 million paid off in one lump sum
--By The Associated Press
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